Government of India has launched Floating Rate Savings Bonds 2020 (Taxable) scheme, with effect from July 01, 2020 in terms of GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020. The terms and conditions of the issuance of the Bonds shall be as per the above GOI Notification.

Eligible Investor

The Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families. NRIs are not eligible for making investments in these Bonds.


Subscription to the bonds will be in the form of cash (upto ₹20,000/- only)/ drafts/cheques or any electronic mode acceptable to the Receiving Office.

Receiving Office

Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of our bank.

Issue Price

  • The Bonds will be issued at par i.e. at ₹ 100.00 per cent
  • The Bonds will be issued for a minimum amount of ₹ 1000/- (face value) and in multiples thereof. Accordingly, the issue price, will be ₹ 1000/- for every ₹ 1,000/-(Nominal)
  • The Bonds will be issued in demat form (Bond Ledger Account) only
  • A certificate of holding will be issued to the customer as proof of subscription
  • There will be no maximum limit for investment in the Bonds.
  • The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office

The interest on the bonds is payable semi-annually on 1st Jan and 1st July every year. The coupon on 1st January 2021 shall be paid at 7.15%. The Interest rate for next half-year will be reset every six months, the first reset being on January 01, 2021. There is no option to pay interest on cumulative basis. The interest rate of the bond, would be re-set half yearly (in sync with the coupon payment date) starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st and is linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate. Accordingly, the coupon rate for first coupon period i.e. July 1 to Dec. 31, 2020, payable on Jan. 01, 2021 is arrived at 7.15% (6.80%+0.35%= 7.15%). All subsequent coupon reset would be based on the fixation of rate of interest on NSC on Jan 01 and July 01 following the above methodology.


The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens.

Tax Treatment

Interest on the Bonds will be taxable under the Income-tax Act, 1961 as amended from time to time and as applicable according to the relevant tax status of the Bond holder.

Transferability and Tradability

The Bonds in the form of Bond Ledger Account shall not be transferable except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.

The Bonds shall not be tradable in the secondary market and shall not be eligible as collateral for loans from banks, Financial Institutions and Non-Banking Financial Company (NBFC) etc.

A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination.

RBI Floating Rate Saving Bonds


Interest Amount (Half Yearly)
Final Amount